Each homeowner will have a settlement specialist assigned to guide them through the programme and who will be able to provide more information about the steps to reach a settlement. 

These include: 

• engaging a licensed builder practitioner (builder), and any other professionals you need  
• getting your property assessed for damage 
• providing a costed scope of works from your builder 
• costs reviewed and confirmed
• a settlement offer made 
• signed Settlement Deed is returned. 

If you feel unable to oversee this process yourself or would like professional advice, we recommend you engage an independent project manager to support you. There is a limit on the pre-construction settlement project management costs that we can pay, so please talk to your settlement specialist about your circumstances and options. 

It’s important you hire qualified experts, such as structural and geotechnical engineers, builders and architects, who can help you gather the information you need. Make sure you’re comfortable with the people you engage and confident they will provide the right information for your situation. 

Pre-settlement: assessing and coordinating your scope of repairs

Engagement: finding a licensed building practitioner

One of the first things you’ll need to do is choose a licensed building practitioner (builder) with the skills and expertise to identify earthquake damage and complete repairs on your home. They’ll do the repairs, manage the build and ensure repairs are completed properly. 

Licensed building practitioners have been assessed by the Ministry of Business, Innovation and Employment (MBIE) as competent to carry out building work essential to the structure of residential buildings. A good place to find one is the Licensed Building Practitioners (LBPs)(external link) website. 

Assessment: getting your property assessed  

To determine the repairs needed to your home, you'll need to provide us with an assessment from your builder confirming the extent of the earthquake damage.

Repairs must bring your home up to the standards of the EQC Act 1993, which was the legislation in place at the time of the Canterbury earthquakes. This means replacing or reinstating property to a condition substantially the same as – but not better or more extensive than – its condition when it was new. This must comply with any applicable laws. 

For more information about what your builder should include in their assessment and associated quote, please refer to our Homeowners’ Guide. 

Your builder may indicate you need a specialist engineer’s report as part of your damage assessment. If so, you’ll need to work with your builder to engage qualified experts to do that. 

Engineering New Zealand’s website(external link) has useful information on choosing an engineer, and a template for engaging an engineer, as well as the professional standards expected when addressing earthquake damage. 

Providing a costed scope of works: information we need to receive  

The scope of works outlines the relevant earthquake damage that needs to be repaired and the method and cost of those repairs. 

Here’s what your builder should include in their costed scope of works:  

• Assessments and quote(s) should clearly state what their content is based on. This includes inspections and assessments that have been done, when and by who, as well as other supporting information, any assumptions and clarifications.  
• Elements and rooms should be separated. All items being repaired should be clearly defined with transparent descriptions and measurements.  
• Large structural elements should be priced in detail and include adequate descriptions and measurements. They should be specific to the scope of work, engineer’s report (if relevant) and site conditions.  
• Ensure your builder includes details about what all costs relate to. Quoted items with no detail other than a general heading (e.g. ‘general requirements’) and a cost will not be acceptable.  
• Sub-contractor quotes: any sub-contractor quotes should also be itemised and included in the main builder’s quote for all repairs.  
• Professional fee costs should be individual and transparent. These should not be grouped together as a lump sum (e.g. there should be separate costs for engineering design, building consents, construction monitoring).  

Ensuring your builder’s quote(s) includes all these things will help avoid delays in our initial assessment and settlement, as well as the potential for variation requests and construction delays.  

The On-sold support package covers the reasonable cost of any specialist reports needed to determine the repair strategy for your home.  This includes reports such as:  

• structural engineering 
• geotechnical engineering 
• roofing 
• drainage 
• asbestos 
• cladding. 

The package does not include costs for other services, such as using a lawyer to work on your application. 

Talk to your settlement specialist if you wish to make additional improvements 

The programme only covers the works required to repair missed earthquake damage, but does have an option for co-funding. If you wish to make additional improvements to your property at the same time, or you prefer to use your settlement to rebuild rather than repair, you must pay the extra costs yourself. If you want to undertake any owner’s works or extra renovations in addition to your repair, this needs to be specified but separated in your builder’s (and any other professional’s) quotes. Please discuss any co-funding with your settlement specialist to understand what this may mean for your settlement. You can also find more information in our Additional Works fact sheet. 

Settlement: making and accepting your offer

The settlement stage is where we review your costed scope of works, and make you a settlement offer, which is the amount the programme can provide you to complete your repairs.

Reaching a settlement

Once you’ve provided the information from your builder and other experts, your settlement specialist will review it and make time to talk you through the process for settling your application. This may include a walk-through of your property with your builder and any other experts that might be required to confirm the scope of work.

We want to confirm a settlement with you as soon as possible, so we need to receive your builder’s assessment and quote(s), and any specialist reports, within the timeframes provided.

Your settlement specialist and our quantity surveyor will review your quote(s) and may have some questions for your builder. We’ll send these to you to discuss with your builder or organise a time to discuss them with you and your builder together.

Once your scope of works has been confirmed, we will let you know and start to prepare your settlement offer, this will include our internal review of the costs. While we are preparing your settlement offer, your builder can begin any design and consent preparation work needed. It’s important they keep this process moving so that there will be plenty of time to meet the new timeframes. 

Your settlement offer

We will review your builder’s quote(s) and any information you provide around temporary accommodation, storage requirements and costs. Once your scope of works has been confirmed, we will let you know and start to start to prepare your settlement offer.  

This offer will include:

• A detailed breakdown of the costs included in your settlement 
• A Settlement Deed providing the details of the earthquake remediation to your property that must be completed (agreed works) 
• A Statutory Declaration that confirms that you will use the ex gratia payment to do those agreed works. This means that you will have a legal obligation to complete the works even if your circumstances change 
• Documentation for an encumbrance to be placed over the title of your property, if required, and removed once the repairs have been completed.

Settlements over $150,000 (placing an encumbrance)

If your On-sold ex gratia payment is more than $150,000, an encumbrance will be registered on the record of title with Toitū Te Whenua Land Information New Zealand (LINZ). 

An encumbrance is a claim registered against the title of your property. It means anyone who requests a copy of the property’s title from LINZ will see that there is an encumbrance registered and will know earthquake repairs have not yet been completed. 

An encumbrance may also apply where cost increases or a variation to your agreed works pushes your repairs over the $150,000 threshold. If that happens, we’ll provide you with a variation to your Settlement Deed to reflect this.  

The encumbrance will be removed once the agreed repairs have been completed and you’ve sent us documentation confirming this. 

For more information about encumbrance, please see the On-sold support package: Encumbrance Factsheet.

Reviewing and accepting your settlement offer

Please seek legal advice and accept your settlement offer as soon as possible within the 30 days.  

It’s important to put plans in place now so you can meet the deadline.  If you do not meet this timeframe, we will have a conversation with you and move to close your application. Once applications are closed, they are unable to be reopened